MIDLAND, Mich., July 22, 2021 /PRNewswire/ -- Dow (NYSE:
DOW):
FINANCIAL HIGHLIGHTS
- GAAP earnings per share (EPS) was $2.51; Operating EPS¹ was $2.72, compared to a loss per share of
$0.26 in the year-ago period and an
increase of $1.36 versus the prior
quarter. Operating EPS excludes certain items in the quarter,
totaling $0.21 per share, primarily
related to an early extinguishment of debt and digitalization
program expenses.
- Net sales were $13.9 billion, up
66% versus the year-ago period and 17% sequentially, with gains in
all operating segments, businesses and regions.
- Local price increased 53% versus the year-ago period and 16%
sequentially, reflecting gains in all operating segments,
businesses and regions, driven by tight supply and demand
fundamentals across key value chains.
- Volume increased 9% versus the year-ago period, with gains in
all operating segments, led by polyurethane and silicones
applications on demand recovery from the impact of the pandemic.
Sequentially, volume increased 1% as demand gains in
infrastructure, industrial and personal care end markets were
partly offset by lingering supply constraints from the impact of
Winter Storm Uri on the U.S. Gulf
Coast.
- Equity earnings were $278
million, up $373 million
compared to the year-ago period, primarily driven by margin
expansion in polyurethanes and polyethylene at the Sadara and
Kuwait joint ventures. Equity
earnings were up $54 million compared
to the prior quarter, primarily driven by the Thai joint
ventures.
- GAAP Net Income was $1.9 billion.
Operating EBIT1 was up $2.8
billion from the year-ago period, with increases in all
operating segments and businesses. The gains reflected margin
expansion and improved equity earnings due to tight supply and
increased demand across key chains. Sequentially, operating EBIT
was up $1.3 billion, with increases
in every operating segment and business.
- Cash provided by operating activities – continuing operations
was $2 billion, up $422 million versus the year-ago period and an
increase of $2.2 billion compared to
the prior quarter. Free cash flow1 was $1.7 billion.
- Dow reduced gross debt by $1.1
billion in the quarter. The Company's proactive liability
management actions to redeem existing notes maturing in 2024 have
resulted in no substantive long-term debt maturities due until the
end of 2025 and a reduction in annual interest expense by
$35 million.
- Returns to shareholders totaled $722
million in the quarter, comprised of $522 million in dividends and $200 million in share repurchases.
SUMMARY FINANCIAL RESULTS
|
Three Months Ended
June 30
|
Three Months
Ended March 31
|
In millions,
except per share amounts
|
2Q21
|
2Q20
|
vs.
SQLY
[B /
(W)]
|
1Q21
|
vs.
PQ
[B /
(W)]
|
Net
Sales
|
$13,885
|
$8,354
|
$5,531
|
$11,882
|
$2,003
|
GAAP Income, Net
of Tax
|
$1,932
|
$(217)
|
$2,149
|
$1,006
|
$926
|
Operating
EBIT¹
|
$2,828
|
$57
|
$2,771
|
$1,554
|
$1,274
|
Operating EBIT
Margin¹
|
20.4%
|
0.7%
|
1,970
bps
|
13.1%
|
730
bps
|
Operating
EBITDA¹
|
$3,573
|
$757
|
$2,816
|
$2,271
|
$1,302
|
GAAP Earnings Per
Share
|
$2.51
|
$(0.31)
|
$2.82
|
$1.32
|
$1.19
|
Operating Earnings
Per Share¹
|
$2.72
|
$(0.26)
|
$2.98
|
$1.36
|
$1.36
|
Cash Provided by
(Used for)
Operating Activities – Cont. Ops
|
$2,021
|
$1,599
|
$422
|
$(228)
|
$2,249
|
|
|
1.
|
Op. Earnings Per
Share, Op. EBIT, Op. EBIT Margin, Op. EBITDA, Free Cash Flow and
Cash Flow Conversion are non-GAAP measures. See page 6 for further
discussion.
|
CEO QUOTE
Jim Fitterling, chairman and
chief executive officer, commented on the quarter:
"Our second quarter results reflected strong demand in all our
value chains and regions as we achieved substantial growth in sales
and earnings both sequentially and year-over-year. Team Dow
maintained its focus on execution and cost discipline, resulting in
continued margin expansion. With our deliberate approach to capital
allocation, we reduced gross debt by more than $1 billion; advanced our incremental, high-growth
investments; returned cash to shareholders through our
industry-leading dividend; and resumed our share repurchase
program. And, we released our consolidated ESG report,
"INtersections", which provides enhanced transparency on our
environmental, social and governance priorities and
performance."
SEGMENT HIGHLIGHTS
Packaging & Specialty Plastics
|
Three Months Ended
June 30
|
Three Months
Ended March 31
|
In millions,
except margin
percentages
|
2Q21
|
2Q20
|
vs.
SQLY
[B /
(W)]
|
1Q21
|
vs.
PQ
[B /
(W)]
|
Net
Sales
|
$7,121
|
$4,001
|
$3,120
|
$6,082
|
$1,039
|
Operating
EBIT
|
$2,014
|
$318
|
$1,696
|
$1,228
|
$786
|
Operating EBIT
Margin
|
28.3%
|
7.9%
|
2,040
bps
|
20.2%
|
810
bps
|
Equity
Earnings
|
$130
|
$20
|
$110
|
$106
|
$24
|
Packaging & Specialty Plastics segment net sales were
$7.1 billion, up 78% versus the
year-ago period. Local price increased 70% due to strong supply and
demand fundamentals, with gains in both businesses and across all
regions. Currency increased net sales by 4%. Volume increased 4%,
primarily driven by gains in olefins, coproducts, and elastomers,
partially offset by lower polyethylene volumes due to supply
constraints. On a sequential basis, the segment recorded a 17% net
sales improvement, driven by continued local price gains across
both businesses and in all regions.
Equity earnings for the segment were $130
million, up $110 million
compared to the year-ago period. Gains were driven by improved
integrated polyethylene margins at the Kuwait, Thai, and Sadara joint ventures. On a
sequential basis, equity earnings increased by $24 million due
to margin expansion at the Thai and Kuwait joint ventures.
Operating EBIT was $2 billion,
compared to $318 million in the
year-ago period, reflecting margin improvement and increased equity
earnings. Op. EBIT margins were up 2,040 basis points
year-over-year. Sequentially, Op. EBIT was up $786 million,
expanding Op. EBIT margins by 810 basis points.
Packaging and Specialty Plastics business reported a net
sales increase versus the year-ago period, led by local price gains
in industrial & consumer packaging, and flexible food &
beverage packaging applications. Volumes declined year-over-year
due to lower polyethylene supply volumes from lingering effects of
Winter Storm Uri and planned
maintenance turnarounds. Compared to the prior quarter, the
business delivered local price gains in all regions, driven by
strong supply and demand fundamentals. Sequential volumes declined
due to continued supply constraints from weather-related production
outages and planned maintenance turnarounds.
Hydrocarbons & Energy business reported a net sales
increase compared to the year-ago period. These gains were driven
by higher local prices and volumes in hydrocarbons and energy and
in all regions except Asia
Pacific. Sequentially, the business delivered sales gains,
primarily due to local price increases in olefins.
Industrial Intermediates & Infrastructure
|
Three Months Ended
June 30
|
Three Months
Ended March 31
|
In millions,
except margin
percentages
|
2Q21
|
2Q20
|
vs.
SQLY
[B /
(W)]
|
1Q21
|
vs.
PQ
[B /
(W)]
|
Net
Sales
|
$4,215
|
$2,417
|
$1,798
|
$3,607
|
$608
|
Operating
EBIT
|
$648
|
$(220)
|
$868
|
$326
|
$322
|
Operating EBIT
Margin
|
15.4%
|
(9.1%)
|
2,450
bps
|
9.0%
|
640
bps
|
Equity Earnings
(Losses)
|
$144
|
$(113)
|
$257
|
$115
|
$29
|
Industrial Intermediates & Infrastructure segment net sales
were $4.2 billion, up 74% versus the
year-ago period on significant recovery from the height of the
pandemic in 2020. Local price improved 53% with double-digit gains
in both businesses and in all regions, led by increases in consumer
durable goods & appliances end markets. Segment volumes
increased by 15% as strong demand in infrastructure, mobility and
furniture & bedding end markets was partially offset by supply
constraints in solvents and intermediates. Currency increased net
sales by 6% year-over-year. On a sequential basis, the segment
recorded a net sales increase of 17%, driven by double-digit price
gains in both businesses and in all regions as well as solid volume
growth in Polyurethanes & Construction Chemicals.
Equity earnings for the segment were $144
million, an increase of $257
million compared to the year-ago period, driven by margin
expansion at the Sadara and Kuwait
joint ventures. On a sequential basis, equity earnings increased by
$29 million due to margin improvement at the Sadara and Thai
joint ventures.
Operating EBIT was $648 million,
an increase of $868 million compared
to the year-ago period, primarily due to pandemic recovery combined
with strong supply and demand fundamentals in both businesses. Op.
EBIT margins were up 2,450 basis points year-over-year.
Sequentially, Op. EBIT was up $322 million, expanding Op.
EBIT margins by 640 basis points, driven by margin improvement
across both businesses.
Polyurethanes & Construction Chemicals business
increased net sales compared to the pandemic lows of the year-ago
period due to strong local price, demand recovery and currency.
Local price increased in all key value chains, end-market
applications and regions on tight supply and demand fundamentals.
Volume growth was primarily due to robust consumer demand in
durable goods & appliances and construction end markets.
Sequentially, the business delivered sales growth on increased
local price and volumes from continuing strong underlying market
dynamics, particularly in infrastructure applications.
Industrial Solutions business net sales increased from the
year-ago period as a result of local price gains in offerings for
coatings, industrial and electronics end markets across all
regions. Volume increases in materials for industrial
manufacturing, coatings, and infrastructure were more than offset
by planned turnarounds, third-party supply constraints, and
lingering effects of Winter Storm
Uri. Net sales increased sequentially, driven by local price
gains in all regions and were partially offset by lower volumes due
to supply constraints from Winter Storm
Uri.
Performance Materials & Coatings
|
Three Months Ended
June 30
|
Three Months
Ended March 31
|
In millions,
except margin
percentages
|
2Q21
|
2Q20
|
vs.
SQLY
[B /
(W)]
|
1Q21
|
vs.
PQ
[B /
(W)]
|
Net
Sales
|
$2,465
|
$1,855
|
$610
|
$2,123
|
$342
|
Operating
EBIT
|
$225
|
$27
|
$198
|
$62
|
$163
|
Operating EBIT
Margin
|
9.1%
|
1.5%
|
760
bps
|
2.9%
|
620
bps
|
Equity
Earnings
|
-
|
$2
|
$(2)
|
$2
|
$(2)
|
Performance Materials & Coatings segment net sales were
$2.5 billion, up 33% over the
year-ago period. Local price increased 16% with gains in both
business and in all regions. Volume increased 13% as mobility,
electronics and building & infrastructure end markets saw
significant demand recovery from the impacts of the pandemic in the
year-ago period. Currency increased net sales by 4% year-over-year.
On a sequential basis, the segment recorded a 16% increase in sales
with price gains in both businesses and in all regions. Volume rose
8% sequentially due to lower planned maintenance activity and
strong demand for silicones and coatings
applications.
Operating EBIT was $225 million,
compared to $27 million in the
year-ago period, as Op. EBIT margins increased 760 basis
points due to pricing gains and strong consumer and industrial
demand recovery. Sequentially, Op. EBIT was up $163 million,
expanding Op. EBIT margins by 620 basis points on pricing momentum
and lower planned maintenance costs.
Consumer Solutions business achieved higher net sales
year-over-year, as demand recovery for silicones offerings led to
local price and volume gains in all regions. Sequentially, the
business achieved broad-based volume growth due to lower planned
maintenance activity and strong demand for silicones applications,
including personal care applications, as certain geographies began
to experience an increase in travel, workplace and social
activities.
Coatings & Performance Monomers business achieved
higher net sales year-over-year primarily driven by local price
gains in all regions. Volumes were in line with the year-ago period
as increased demand for coatings applications was offset by limited
supply availability due to lingering raw material and logistical
constraints from Winter Storm Uri.
Sequentially, the business experienced local price gains that were
supported by supply and demand fundamentals and increased raw
material costs. Volume increased sequentially due to strong
seasonal demand for industrial and architectural coatings.
OUTLOOK
"Our first half performance reflects Team Dow's agility in
responding to increased customer demand despite industry supply
disruptions across many value chains," said Fitterling. "Looking
ahead, we expect earnings momentum from additional
improvements in consumer spending, international travel and
industrial production. As the economic recovery broadens
around the world, Dow is well positioned to continue
capturing value with our differentiated materials science portfolio
and participation in fast-growing end markets. We will share more
about our strategic and financial priorities to continue creating
long-term value for all of our stakeholders at our upcoming
Investor Day on October 6, 2021."
Conference Call
Dow will host a live webcast of
its second quarter earnings conference call with investors to
discuss its results, business outlook and other matters today at
8:00 a.m. ET. The webcast and slide
presentation that accompany the conference call will be posted on
the events and presentations page of investors.dow.com.
About Dow
Dow combines global breadth, asset
integration and scale, focused innovation and leading business
positions to achieve profitable growth. The Company's ambition is
to become the most innovative, customer centric, inclusive and
sustainable materials science company, with a purpose to deliver a
sustainable future for the world through our materials science
expertise and collaboration with our partners. Dow's portfolio of
plastics, industrial intermediates, coatings and silicones
businesses delivers a broad range of differentiated science-based
products and solutions for its customers in high-growth market
segments, such as packaging, infrastructure, mobility and consumer
care. Dow operates 106 manufacturing sites in 31 countries and
employs approximately 35,700 people. Dow delivered sales of
approximately $39 billion in 2020.
References to Dow or the Company mean Dow Inc. and its
subsidiaries. For more information, please visit
www.dow.com or follow @DowNewsroom on Twitter.
Cautionary Statement about Forward-Looking Statements
Certain statements in this communication are "forward-looking
statements" within the meaning of the federal securities laws,
including Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Such statements often address expected future business and
financial performance, financial condition, and other matters, and
often contain words or phrases such as "anticipate," "believe,"
"estimate," "expect," "intend," "may," "opportunity," "outlook,"
"plan," "project," "seek," "should," "strategy," "target," "will,"
"will be," "will continue," "will likely result," "would" and
similar expressions, and variations or negatives of these words or
phrases.
Forward-looking statements are based on current assumptions and
expectations of future events that are subject to risks,
uncertainties and other factors that are beyond Dow's control,
which may cause actual results to differ materially from those
projected, anticipated or implied in the forward-looking statements
and speak only as of the date the statements were made. These
factors include, but are not limited to: sales of Dow's products;
Dow's expenses, future revenues and profitability; the continuing
global and regional economic impacts of the coronavirus disease
2019 ("COVID-19") pandemic and other public health-related risks
and events on Dow's business; capital requirements and need for and
availability of financing; size of the markets for Dow's products
and services and ability to compete in such markets; failure to
develop and market new products and optimally manage product life
cycles; the rate and degree of market acceptance of Dow's products;
significant litigation and environmental matters and related
contingencies and unexpected expenses; the success of competing
technologies that are or may become available; the ability to
protect Dow's intellectual property in the United States and abroad; developments
related to contemplated restructuring activities and proposed
divestitures or acquisitions such as workforce reduction,
manufacturing facility and/or asset closure and related exit and
disposal activities, and the benefits and costs associated with
each of the foregoing; fluctuations in energy and raw material
prices; management of process safety and product stewardship;
changes in relationships with Dow's significant customers and
suppliers; changes in consumer preferences and demand; changes in
laws and regulations, political conditions or industry development;
global economic and capital markets conditions, such as inflation,
market uncertainty, interest and currency exchange rates, and
equity and commodity prices; business or supply disruptions;
security threats, such as acts of sabotage, terrorism or war;
weather events and natural disasters; and disruptions in Dow's
information technology networks and systems.
Risks related to Dow's separation from DowDuPont Inc. include,
but are not limited to: (i) Dow's inability to achieve some or all
of the benefits that it expects to receive from the separation from
DowDuPont Inc.; (ii) certain tax risks associated with the
separation; (iii) the failure of Dow's pro forma financial
information to be a reliable indicator of Dow's future results;
(iv) non-compete restrictions under the separation agreement; (v)
receipt of less favorable terms in the commercial agreements Dow
entered into with DuPont de Nemours, Inc. ("DuPont") and Corteva,
Inc. ("Corteva"), including restrictions under intellectual
property cross-license agreements, than Dow would have received
from an unaffiliated third party; and (vi) Dow's obligation to
indemnify DuPont and/or Corteva for certain liabilities.
Where, in any forward-looking statement, an expectation or
belief as to future results or events is expressed, such
expectation or belief is based on the current plans and
expectations of management and expressed in good faith and believed
to have a reasonable basis, but there can be no assurance that the
expectation or belief will result or be achieved or accomplished. A
detailed discussion of principal risks and uncertainties which may
cause actual results and events to differ materially from such
forward-looking statements is included in the section titled "Risk
Factors" contained in the Company's Annual Report on Form 10-K for
the year ended December 31, 2020.
These are not the only risks and uncertainties that Dow faces.
There may be other risks and uncertainties that Dow is unable to
identify at this time or that Dow does not currently expect to have
a material impact on its business. If any of those risks or
uncertainties develops into an actual event, it could have a
material adverse effect on Dow's business. Dow assumes no
obligation to update or revise publicly any forward-looking
statements whether because of new information, future events, or
otherwise, except as required by securities and other applicable
laws.
Non-GAAP Financial Measures
This earnings release
includes information that does not conform to U.S. GAAP and are
considered non-GAAP measures. Management uses these measures
internally for planning, forecasting and evaluating the performance
of the Company's segments, including allocating resources. Dow's
management believes that these non-GAAP measures best reflect the
ongoing performance of the Company during the periods presented and
provide more relevant and meaningful information to investors as
they provide insight with respect to ongoing operating results of
the Company and a more useful comparison of year-over-year results.
These non-GAAP measures supplement the Company's U.S. GAAP
disclosures and should not be viewed as alternatives to U.S. GAAP
measures of performance. Furthermore, such non-GAAP measures may
not be consistent with similar measures provided or used by other
companies. Non-GAAP measures included in this release are defined
below. Reconciliations for these non-GAAP measures to U.S. GAAP are
provided in the Selected Financial Information and Non-GAAP
Measures section starting on page 11. Dow does not provide
forward-looking U.S. GAAP financial measures or a reconciliation of
forward-looking non-GAAP financial measures to the most comparable
U.S. GAAP financial measures on a forward-looking basis because the
Company is unable to predict with reasonable certainty the ultimate
outcome of pending litigation, unusual gains and losses, foreign
currency exchange gains or losses and potential future asset
impairments, as well as discrete taxable events, without
unreasonable effort. These items are uncertain, depend on various
factors, and could have a material impact on U.S. GAAP results for
the guidance period.
Operating earnings per share is defined as "Earnings (loss) per
common share - diluted" excluding the after-tax impact of
significant items.
Operating EBIT is defined as earnings (i.e., "Income (loss)
before income taxes") before interest, excluding the impact of
significant items.
Operating EBIT margin is defined as Operating EBIT as a
percentage of net sales.
Operating EBITDA is defined as earnings (i.e., "Income (loss)
before income taxes") before interest, depreciation and
amortization, excluding the impact of significant items.
Free cash flow is defined as "Cash provided by operating
activities - continuing operations," less capital expenditures.
Under this definition, free cash flow represents the cash generated
by the Company from operations after investing in its asset base.
Free cash flow, combined with cash balances and other sources of
liquidity, represent the cash available to fund obligations and
provide returns to shareholders. Free cash flow is an integral
financial measure used in the Company's financial planning
process.
Cash flow conversion is defined as "Cash provided by operating
activities - continuing operations," divided by Operating EBITDA.
Management believes cash flow conversion is an important financial
metric as it helps the Company determine how efficiently it is
converting its earnings into cash flow.
Dow Inc. and
Subsidiaries
Consolidated Statements of Income
|
|
In millions, except
per share amounts (Unaudited)
|
Three Months
Ended
|
Six Months
Ended
|
Jun 30,
2021
|
Jun 30,
2020
|
Jun 30,
2021
|
Jun 30,
2020
|
Net sales
|
$
|
13,885
|
|
$
|
8,354
|
|
$
|
25,767
|
|
$
|
18,124
|
|
Cost of
sales
|
10,740
|
|
7,610
|
|
20,802
|
|
15,840
|
|
Research and
development expenses
|
228
|
|
182
|
|
422
|
|
361
|
|
Selling, general and
administrative expenses
|
440
|
|
357
|
|
806
|
|
691
|
|
Amortization of
intangibles
|
100
|
|
100
|
|
201
|
|
200
|
|
Restructuring and
asset related charges - net
|
22
|
|
6
|
|
22
|
|
102
|
|
Integration and
separation costs
|
—
|
|
46
|
|
—
|
|
111
|
|
Equity in earnings
(losses) of nonconsolidated affiliates
|
278
|
|
(95)
|
|
502
|
|
(184)
|
|
Sundry income
(expense) - net
|
(3)
|
|
53
|
|
125
|
|
(28)
|
|
Interest
income
|
13
|
|
6
|
|
21
|
|
21
|
|
Interest expense and
amortization of debt discount
|
187
|
|
200
|
|
383
|
|
415
|
|
Income (loss) before
income taxes
|
2,456
|
|
(183)
|
|
3,779
|
|
213
|
|
Provision for income
taxes
|
524
|
|
34
|
|
841
|
|
172
|
|
Net income
(loss)
|
1,932
|
|
(217)
|
|
2,938
|
|
41
|
|
Net income
attributable to noncontrolling interests
|
31
|
|
8
|
|
46
|
|
27
|
|
Net income (loss)
available for Dow Inc. common stockholders
|
$
|
1,901
|
|
$
|
(225)
|
|
$
|
2,892
|
|
$
|
14
|
|
|
|
—
|
|
|
—
|
|
Per common share
data:
|
|
|
|
|
Earnings (loss) per
common share - basic
|
$
|
2.53
|
|
$
|
(0.31)
|
|
$
|
3.86
|
|
$
|
0.01
|
|
Earnings (loss) per
common share - diluted
|
$
|
2.51
|
|
$
|
(0.31)
|
|
$
|
3.83
|
|
$
|
0.01
|
|
|
|
|
|
|
Weighted-average
common shares outstanding - basic
|
747.0
|
|
739.3
|
|
745.9
|
|
739.7
|
|
Weighted-average
common shares outstanding - diluted
|
752.9
|
|
739.3
|
|
751.4
|
|
741.0
|
|
Dow Inc. and
Subsidiaries
Consolidated Balance Sheets
|
|
In millions, except
share amounts (Unaudited)
|
Jun 30,
2021
|
Dec 31,
2020
|
Assets
|
|
|
Current
Assets
|
|
|
Cash and cash
equivalents (variable interest entities restricted - 2021: $36;
2020: $26)
|
$
|
3,491
|
|
$
|
5,104
|
|
Accounts and notes
receivable:
|
|
|
Trade (net of
allowance for doubtful receivables - 2021: $59; 2020:
$51)
|
6,456
|
|
4,839
|
|
Other
|
2,650
|
|
2,551
|
|
Inventories
|
6,952
|
|
5,701
|
|
Other current
assets
|
803
|
|
889
|
|
Total current
assets
|
20,352
|
|
19,084
|
|
Investments
|
|
|
Investment in
nonconsolidated affiliates
|
1,754
|
|
1,327
|
|
Other investments
(investments carried at fair value - 2021: $1,655; 2020:
$1,674)
|
2,764
|
|
2,775
|
|
Noncurrent
receivables
|
480
|
|
465
|
|
Total
investments
|
4,998
|
|
4,567
|
|
Property
|
|
|
Property
|
56,564
|
|
56,325
|
|
Less: Accumulated
depreciation
|
36,700
|
|
36,086
|
|
Net property (variable
interest entities restricted - 2021: $204; 2020: $232)
|
19,864
|
|
20,239
|
|
Other
Assets
|
|
|
Goodwill
|
8,833
|
|
8,908
|
|
Other intangible
assets (net of accumulated amortization - 2021: $4,650; 2020:
$4,428)
|
3,093
|
|
3,352
|
|
Operating lease
right-of-use assets
|
1,745
|
|
1,856
|
|
Deferred income tax
assets
|
1,529
|
|
2,215
|
|
Deferred charges and
other assets
|
1,354
|
|
1,249
|
|
Total other
assets
|
16,554
|
|
17,580
|
|
Total
Assets
|
$
|
61,768
|
|
$
|
61,470
|
|
Liabilities and
Equity
|
|
|
Current
Liabilities
|
|
|
Notes
payable
|
$
|
203
|
|
$
|
156
|
|
Long-term debt due
within one year
|
445
|
|
460
|
|
Accounts
payable:
|
|
|
Trade
|
4,664
|
|
3,763
|
|
Other
|
2,638
|
|
2,126
|
|
Operating lease
liabilities - current
|
402
|
|
416
|
|
Income taxes
payable
|
462
|
|
397
|
|
Accrued and other
current liabilities
|
3,494
|
|
3,790
|
|
Total current
liabilities
|
12,308
|
|
11,108
|
|
Long-Term Debt
(variable interest entities nonrecourse - 2021: $5; 2020:
$6)
|
15,093
|
|
16,491
|
|
Other Noncurrent
Liabilities
|
|
|
Deferred income tax
liabilities
|
504
|
|
405
|
|
Pension and other
postretirement benefits - noncurrent
|
8,888
|
|
11,648
|
|
Asbestos-related
liabilities - noncurrent
|
975
|
|
1,013
|
|
Operating lease
liabilities - noncurrent
|
1,419
|
|
1,521
|
|
Other noncurrent
obligations
|
6,428
|
|
6,279
|
|
Total other noncurrent
liabilities
|
18,214
|
|
20,866
|
|
Stockholders'
Equity
|
|
|
Common stock
(authorized 5,000,000,000 shares of $0.01 par value
each; issued 2021: 761,524,466
shares; 2020: 755,993,198 shares)
|
8
|
|
8
|
|
Additional paid-in
capital
|
7,898
|
|
7,595
|
|
Retained
earnings
|
18,200
|
|
16,361
|
|
Accumulated other
comprehensive loss
|
(9,676)
|
|
(10,855)
|
|
Unearned ESOP
shares
|
(32)
|
|
(49)
|
|
Treasury stock at cost
(2021: 15,752,678 shares; 2020: 12,803,303 shares)
|
(825)
|
|
(625)
|
|
Dow Inc.'s
stockholders' equity
|
15,573
|
|
12,435
|
|
Noncontrolling
interests
|
580
|
|
570
|
|
Total
equity
|
16,153
|
|
13,005
|
|
Total Liabilities and
Equity
|
$
|
61,768
|
|
$
|
61,470
|
|
Dow Inc. and
Subsidiaries
Consolidated Statements of Cash Flows
|
|
In millions
(Unaudited)
|
Six Months
Ended
|
Jun 30,
2021
|
Jun 30,
2020
|
Operating
Activities
|
|
|
Net income
|
$
|
2,938
|
|
$
|
41
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
1,462
|
|
1,424
|
|
Provision (credit) for
deferred income tax
|
388
|
|
(59)
|
|
Earnings of
nonconsolidated affiliates less than (in excess of) dividends
received
|
(283)
|
|
455
|
|
Net periodic pension
benefit cost
|
29
|
|
129
|
|
Pension
contributions
|
(1,109)
|
|
(112)
|
|
Net gain on sales of
assets, businesses and investments
|
(50)
|
|
(39)
|
|
Restructuring and
asset related charges - net
|
22
|
|
102
|
|
Other net
loss
|
224
|
|
163
|
|
Changes in assets and
liabilities, net of effects of acquired and divested
companies:
|
|
|
Accounts and notes
receivable
|
(1,903)
|
|
696
|
|
Inventories
|
(1,278)
|
|
429
|
|
Accounts
payable
|
1,357
|
|
(896)
|
|
Other assets and
liabilities, net
|
(4)
|
|
502
|
|
Cash provided by
operating activities - continuing operations
|
1,793
|
|
2,835
|
|
Cash used for
operating activities - discontinued operations
|
(80)
|
|
(6)
|
|
Cash provided by
operating activities
|
1,713
|
|
2,829
|
|
Investing
Activities
|
|
|
Capital
expenditures
|
(622)
|
|
(668)
|
|
Investment in gas
field developments
|
(24)
|
|
(5)
|
|
Purchases of
previously leased assets
|
(3)
|
|
(2)
|
|
Proceeds from sales of
property and businesses, net of cash divested
|
10
|
|
14
|
|
Acquisitions of
property and businesses, net of cash acquired
|
(107)
|
|
—
|
|
Investments in and
loans to nonconsolidated affiliates
|
—
|
|
(236)
|
|
Distributions and loan
repayments from nonconsolidated affiliates
|
11
|
|
6
|
|
Purchases of
investments
|
(560)
|
|
(462)
|
|
Proceeds from sales
and maturities of investments
|
527
|
|
790
|
|
Other investing
activities, net
|
—
|
|
29
|
|
Cash used for
investing activities
|
(768)
|
|
(534)
|
|
Financing
Activities
|
|
|
Changes in short-term
notes payable
|
(38)
|
|
181
|
|
Proceeds from issuance
of short-term debt greater than three months
|
72
|
|
163
|
|
Payments on short-term
debt greater than three months
|
—
|
|
(100)
|
|
Proceeds from issuance
of long-term debt
|
68
|
|
2,509
|
|
Payments on long-term
debt
|
(1,425)
|
|
(2,359)
|
|
Purchases of treasury
stock
|
(200)
|
|
(125)
|
|
Proceeds from issuance
of stock
|
200
|
|
30
|
|
Transaction financing,
debt issuance and other costs
|
(95)
|
|
(99)
|
|
Employee taxes paid
for share-based payment arrangements
|
(11)
|
|
(26)
|
|
Distributions to
noncontrolling interests
|
(28)
|
|
(19)
|
|
Dividends paid to
stockholders
|
(1,043)
|
|
(1,034)
|
|
Cash used for
financing activities
|
(2,500)
|
|
(879)
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(12)
|
|
(66)
|
|
Summary
|
|
|
Increase (decrease) in
cash, cash equivalents and restricted cash
|
(1,567)
|
|
1,350
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
5,108
|
|
2,380
|
|
Cash, cash equivalents
and restricted cash at end of period
|
$
|
3,541
|
|
$
|
3,730
|
|
Less: Restricted cash
and cash equivalents, included in "Other current assets"
|
50
|
|
6
|
|
Cash and cash
equivalents at end of period
|
$
|
3,491
|
|
$
|
3,724
|
|
Dow Inc. and
Subsidiaries
Net Sales by Segment and Geographic Region
|
|
Net Sales by
Segment
|
Three Months
Ended
|
Six Months
Ended
|
In millions
(Unaudited)
|
Jun 30,
2021
|
Jun 30,
2020
|
Jun 30,
2021
|
Jun 30,
2020
|
Packaging &
Specialty Plastics
|
$
|
7,121
|
$
|
4,001
|
$
|
13,203
|
$
|
8,610
|
Industrial
Intermediates & Infrastructure
|
4,215
|
2,417
|
7,822
|
5,462
|
Performance Materials
& Coatings
|
2,465
|
1,855
|
4,588
|
3,920
|
Corporate
|
84
|
81
|
154
|
132
|
Total
|
$
|
13,885
|
$
|
8,354
|
$
|
25,767
|
$
|
18,124
|
U.S. &
Canada
|
$
|
4,927
|
$
|
2,944
|
$
|
8,955
|
$
|
6,494
|
EMEAI
1
|
5,102
|
2,711
|
9,431
|
6,122
|
Asia
Pacific
|
2,479
|
1,932
|
4,844
|
3,777
|
Latin
America
|
1,377
|
767
|
2,537
|
1,731
|
Total
|
$
|
13,885
|
$
|
8,354
|
$
|
25,767
|
$
|
18,124
|
|
|
|
|
Net Sales Variance
by
Segment and Geographic
Region
|
Three Months Ended
Jun 30, 2021
|
Six Months Ended
Jun 30, 2021
|
|
Local
Price &
Product
Mix
|
Currency
|
Volume
|
Total
|
Local
Price &
Product
Mix
|
Currency
|
Volume
|
Total
|
|
Percent change from
prior year
|
|
Packaging &
Specialty
Plastics
|
70
|
%
|
4
|
%
|
4
|
%
|
78
|
%
|
46
|
%
|
3
|
%
|
4
|
%
|
53
|
%
|
|
Industrial
Intermediates &
Infrastructure
|
53
|
|
6
|
|
15
|
|
74
|
|
36
|
|
4
|
|
3
|
|
43
|
|
|
Performance Materials
&
Coatings
|
16
|
|
4
|
|
13
|
|
33
|
|
10
|
|
3
|
|
4
|
|
17
|
|
|
Total
|
53
|
%
|
4
|
%
|
9
|
%
|
66
|
%
|
34
|
%
|
4
|
%
|
4
|
%
|
42
|
%
|
|
Total, excluding
the
Hydrocarbons & Energy
business
|
45
|
%
|
4
|
%
|
8
|
%
|
57
|
%
|
31
|
%
|
4
|
%
|
2
|
%
|
37
|
%
|
|
U.S. &
Canada
|
55
|
%
|
—
|
%
|
12
|
%
|
67
|
%
|
36
|
%
|
—
|
%
|
2
|
%
|
38
|
%
|
|
EMEAI
1
|
63
|
|
11
|
|
14
|
|
88
|
|
38
|
|
9
|
|
7
|
|
54
|
|
|
Asia
Pacific
|
28
|
|
4
|
|
(4)
|
|
28
|
|
21
|
|
4
|
|
3
|
|
28
|
|
|
Latin
America
|
70
|
|
—
|
|
10
|
|
80
|
|
45
|
|
—
|
|
2
|
|
47
|
|
|
Total
|
53
|
%
|
4
|
%
|
9
|
%
|
66
|
%
|
34
|
%
|
4
|
%
|
4
|
%
|
42
|
%
|
|
|
|
|
Net Sales Variance
by Segment and Geographic Region
|
Three Months Ended
Jun 30, 2021
|
|
Local
Price &
Product
Mix
|
Currency
|
Volume
|
Total
|
|
Percent change from
prior quarter
|
|
Packaging &
Specialty Plastics
|
19
|
%
|
(1)
|
%
|
(1)
|
%
|
17
|
%
|
|
Industrial
Intermediates & Infrastructure
|
17
|
|
(1)
|
|
1
|
|
17
|
|
|
Performance Materials
& Coatings
|
9
|
|
(1)
|
|
8
|
|
16
|
|
|
Total
|
16
|
%
|
—
|
%
|
1
|
%
|
17
|
%
|
|
Total, excluding the
Hydrocarbons & Energy business
|
17
|
%
|
(1)
|
%
|
1
|
%
|
17
|
%
|
|
U.S. &
Canada
|
13
|
%
|
—
|
%
|
9
|
%
|
22
|
%
|
|
EMEAI
1
|
21
|
|
(1)
|
|
(2)
|
|
18
|
|
|
Asia
Pacific
|
10
|
|
(1)
|
|
(4)
|
|
5
|
|
|
Latin
America
|
23
|
|
—
|
|
(4)
|
|
19
|
|
|
Total
|
16
|
%
|
—
|
%
|
1
|
%
|
17
|
%
|
|
1. Europe, Middle
East, Africa and India.
|
Dow Inc. and
Subsidiaries
Selected Financial Information and Non-GAAP Measures
|
|
Operating EBIT by
Segment
|
|
Three Months
Ended
|
Six Months
Ended
|
In millions
(Unaudited)
|
|
Jun 30,
2021
|
Jun 30,
2020
|
Jun 30,
2021
|
Jun 30,
2020
|
Packaging &
Specialty Plastics
|
|
$
|
2,014
|
|
$
|
318
|
|
$
|
3,242
|
|
$
|
898
|
|
Industrial
Intermediates & Infrastructure
|
|
648
|
|
(220)
|
|
974
|
|
(45)
|
|
Performance Materials
& Coatings
|
|
225
|
|
27
|
|
287
|
|
189
|
|
Corporate
|
|
(59)
|
|
(68)
|
|
(121)
|
|
(142)
|
|
Total
|
|
$
|
2,828
|
|
$
|
57
|
|
$
|
4,382
|
|
$
|
900
|
|
|
|
|
|
|
|
Depreciation and
Amortization by Segment
|
|
Three Months
Ended
|
Six Months
Ended
|
In millions
(Unaudited)
|
|
Jun 30,
2021
|
Jun 30,
2020
|
Jun 30,
2021
|
Jun 30,
2020
|
Packaging &
Specialty Plastics
|
|
$
|
352
|
|
$
|
334
|
|
$
|
688
|
|
$
|
686
|
|
Industrial
Intermediates & Infrastructure
|
|
168
|
|
145
|
|
324
|
|
295
|
|
Performance Materials
& Coatings
|
|
217
|
|
215
|
|
435
|
|
431
|
|
Corporate
|
|
8
|
|
6
|
|
15
|
|
12
|
|
Total
|
|
$
|
745
|
|
$
|
700
|
|
$
|
1,462
|
|
$
|
1,424
|
|
|
|
|
|
|
|
Operating EBITDA
by Segment
|
|
Three Months
Ended
|
Six Months
Ended
|
In millions
(Unaudited)
|
|
Jun 30,
2021
|
Jun 30,
2020
|
Jun 30,
2021
|
Jun 30,
2020
|
Packaging &
Specialty Plastics
|
|
$
|
2,366
|
|
$
|
652
|
|
$
|
3,930
|
|
$
|
1,584
|
|
Industrial
Intermediates & Infrastructure
|
|
816
|
|
(75)
|
|
1,298
|
|
250
|
|
Performance Materials
& Coatings
|
|
442
|
|
242
|
|
722
|
|
620
|
|
Corporate
|
|
(51)
|
|
(62)
|
|
(106)
|
|
(130)
|
|
Total
|
|
$
|
3,573
|
|
$
|
757
|
|
$
|
5,844
|
|
$
|
2,324
|
|
|
|
|
|
|
|
Equity in Earnings
(Losses) of Nonconsolidated
Affiliates by Segment
|
|
Three Months
Ended
|
Six Months
Ended
|
In millions
(Unaudited)
|
|
Jun 30,
2021
|
Jun 30,
2020
|
Jun 30,
2021
|
Jun 30,
2020
|
Packaging &
Specialty Plastics
|
|
$
|
130
|
|
$
|
20
|
|
$
|
236
|
|
$
|
25
|
|
Industrial
Intermediates & Infrastructure
|
|
144
|
|
(113)
|
|
259
|
|
(189)
|
|
Performance Materials
& Coatings
|
|
—
|
|
2
|
|
2
|
|
3
|
|
Corporate
|
|
4
|
|
(4)
|
|
5
|
|
(23)
|
|
Total
|
|
$
|
278
|
|
$
|
(95)
|
|
$
|
502
|
|
$
|
(184)
|
|
|
|
|
|
|
|
Reconciliation of
"Net income" to "Operating EBIT"
|
Three Months
Ended
|
Six Months
Ended
|
In millions
(Unaudited)
|
Mar 31,
2021
|
Jun 30,
2021
|
Jun 30,
2020
|
Jun 30,
2021
|
Jun 30,
2020
|
Net income
|
$
|
1,006
|
|
$
|
1,932
|
|
$
|
(217)
|
|
$
|
2,938
|
|
$
|
41
|
|
+ Provision for income
taxes
|
317
|
|
524
|
|
34
|
|
841
|
|
172
|
|
Income before income
taxes
|
$
|
1,323
|
|
$
|
2,456
|
|
$
|
(183)
|
|
$
|
3,779
|
|
$
|
213
|
|
- Interest
income
|
8
|
|
13
|
|
6
|
|
21
|
|
21
|
|
+ Interest expense and
amortization of debt discount
|
196
|
|
187
|
|
200
|
|
383
|
|
415
|
|
- Significant
items
|
(43)
|
|
(198)
|
|
(46)
|
|
(241)
|
|
(293)
|
|
Operating EBIT
(non-GAAP)
|
$
|
1,554
|
|
$
|
2,828
|
|
$
|
57
|
|
$
|
4,382
|
|
$
|
900
|
|
Dow Inc. and
Subsidiaries
Selected Financial Information and Non-GAAP Measures
|
|
Significant Items
Impacting Results for the Three Months Ended Jun 30,
2021
|
In millions, except
per share amounts (Unaudited)
|
Pretax
1
|
Net
Income 2
|
EPS
3
|
Income Statement
Classification
|
Reported
results
|
$
|
2,456
|
|
$
|
1,901
|
|
$
|
2.51
|
|
|
Less: Significant
items
|
|
|
|
|
Digitalization program
costs 4
|
(48)
|
|
(37)
|
|
(0.05)
|
|
Cost of sales ($41
million);
R&D ($1 million);
SG&A ($6 million)
|
Restructuring,
implementation costs and
asset related charges - net 5
|
(43)
|
|
(34)
|
|
(0.04)
|
|
Cost of sales ($17
million);
R&D ($2 million);
SG&A ($2 million);
Restructuring and asset related
charges - net ($22 million)
|
Loss on early
extinguishment of debt
|
(102)
|
|
(84)
|
|
(0.11)
|
|
Sundry income
(expense) - net
|
Indemnification and
other transaction
related costs 6
|
(5)
|
|
(5)
|
|
(0.01)
|
|
Sundry income
(expense) - net
|
Total significant
items
|
$
|
(198)
|
|
$
|
(160)
|
|
$
|
(0.21)
|
|
|
Operating results
(non-GAAP)
|
$
|
2,654
|
|
$
|
2,061
|
|
$
|
2.72
|
|
|
|
Significant Items
Impacting Results for the Three Months Ended Jun 30,
2020
|
In millions, except
per share amounts (Unaudited)
|
Pretax
1
|
Net
Income 2
|
EPS
3
|
Income Statement
Classification
|
Reported
results
|
$
|
(183)
|
|
$
|
(225)
|
|
$
|
(0.31)
|
|
|
Less: Significant
items
|
|
|
|
|
Integration and
separation costs
|
(46)
|
|
(36)
|
|
(0.05)
|
|
Integration and
separation costs
|
Restructuring,
implementation costs and
asset related charges - net
|
(6)
|
|
(6)
|
|
(0.01)
|
|
Restructuring and
asset related
charges -
net
|
Litigation related
charges, awards and
adjustments
|
6
|
|
6
|
|
0.01
|
|
Sundry income
(expense) - net
|
Total significant
items
|
$
|
(46)
|
|
$
|
(36)
|
|
$
|
(0.05)
|
|
|
Operating results
(non-GAAP)
|
$
|
(137)
|
|
$
|
(189)
|
|
$
|
(0.26)
|
|
|
1. "Income (loss)
before income taxes."
|
2. "Net income (loss)
available for Dow Inc. common stockholders." The income tax effect
on significant items was calculated based upon the
enacted tax laws and statutory income tax
rates applicable in the tax jurisdiction(s) of the underlying
non-GAAP adjustment.
|
3. "Earnings (loss)
per common share - diluted."
|
4. Costs associated
with implementing the Company's Digital Acceleration
program.
|
5. Restructuring
charges, asset related charges, and costs associated with
implementing the Company's 2020 Restructuring Program.
|
6. Primarily related
to charges associated with agreements entered into with DuPont and
Corteva as part of the separation and distribution which,
among other matters, provides for
cross-indemnities and allocations of obligations and liabilities
for periods prior to, at and after the completion
of the separation.
|
Dow Inc. and
Subsidiaries
Selected Financial Information and Non-GAAP Measures
|
|
Significant Items
Impacting Results for the Six Months Ended Jun 30,
2021
|
In millions, except
per share amounts (Unaudited)
|
Pretax
1
|
Net
Income 2
|
EPS
3
|
Income Statement
Classification
|
Reported
results
|
$
|
3,779
|
|
$
|
2,892
|
|
$
|
3.83
|
|
|
Less: Significant
items
|
|
|
|
|
Digitalization program
costs 4
|
(81)
|
|
(62)
|
|
(0.08)
|
|
Cost of sales ($70
million);
R&D ($1 million);
SG&A ($10 million)
|
Restructuring,
implementation costs and
asset related charges - net 5
|
(53)
|
|
(42)
|
|
(0.05)
|
|
Cost of sales ($26
million);
R&D ($3 million);
SG&A ($2 million);
Restructuring and asset related
charges - net ($22 million)
|
Loss on early
extinguishment of debt
|
(102)
|
|
(84)
|
|
(0.11)
|
|
Sundry income
(expense) - net
|
Indemnification and
other transaction
related costs 6
|
(5)
|
|
(5)
|
|
(0.01)
|
|
Sundry income
(expense) - net
|
Total significant
items
|
$
|
(241)
|
|
$
|
(193)
|
|
$
|
(0.25)
|
|
|
Operating results
(non-GAAP)
|
$
|
4,020
|
|
$
|
3,085
|
|
$
|
4.08
|
|
|
|
Significant Items
Impacting Results for the Six Months Ended Jun 30,
2020
|
In millions, except
per share amounts (Unaudited)
|
Pretax
1
|
Net
Income 2
|
EPS
3
|
Income Statement
Classification
|
Reported
results
|
$
|
213
|
|
$
|
14
|
|
$
|
0.01
|
|
|
Less: Significant
items
|
|
|
|
|
Integration and
separation costs
|
(111)
|
|
(87)
|
|
(0.12)
|
|
Integration and
separation costs
|
Restructuring,
implementation costs and
asset related charges - net
|
(102)
|
|
(85)
|
|
(0.12)
|
|
Restructuring and
asset related
charges -
net
|
Loss on early
extinguishment of debt
|
(86)
|
|
(70)
|
|
(0.09)
|
|
Sundry income
(expense) - net
|
Litigation related
charges, awards and
adjustments
|
6
|
|
6
|
|
0.01
|
|
Sundry income
(expense) - net
|
Total significant
items
|
$
|
(293)
|
|
$
|
(236)
|
|
$
|
(0.32)
|
|
|
Operating results
(non-GAAP)
|
$
|
506
|
|
$
|
250
|
|
$
|
0.33
|
|
|
1. "Income before
income taxes"
|
2. "Net income
available for Dow Inc. common stockholders." The income tax effect
on significant items was calculated based upon the enacted
tax laws and statutory income tax
rates applicable in the tax jurisdiction(s) of the underlying
non-GAAP adjustment.
|
3. "Earnings per
common share - diluted."
|
4. Costs associated
with implementing the Company's Digital Acceleration
program.
|
5. Restructuring
charges, asset related charges, and costs associated with
implementing the Company's 2020 Restructuring Program.
|
6. Primarily related
to charges associated with agreements entered into with DuPont and
Corteva as part of the separation and distribution which,
among other matters, provides for
cross-indemnities and allocations of obligations and liabilities
for periods prior to, at and after the completion
of the separation.
|
Dow Inc. and
Subsidiaries
Selected Financial Information and Non-GAAP Measures
|
|
Significant Items
Impacting Results for the Three Months Ended Mar 31,
2021
|
In millions, except
per share amounts (Unaudited)
|
Pretax
1
|
Net
Income 2
|
EPS
3
|
Income Statement
Classification
|
Reported
results
|
$
|
1,323
|
|
$
|
991
|
|
$
|
1.32
|
|
|
Less: Significant
items
|
|
|
|
|
Restructuring,
implementation costs and
asset related charges - net 4
|
(10)
|
|
(8)
|
|
(0.01)
|
|
Cost of sales ($9
million);
R&D ($1
million)
|
Digitalization program
costs 5
|
(33)
|
|
(25)
|
|
(0.03)
|
|
Cost of sales ($29
million);
SG&A ($4
million)
|
Total significant
items
|
$
|
(43)
|
|
$
|
(33)
|
|
$
|
(0.04)
|
|
|
Operating results
(non-GAAP)
|
$
|
1,366
|
|
$
|
1,024
|
|
$
|
1.36
|
|
|
1. "Income before
income taxes"
|
2. "Net income
available for Dow Inc. common stockholders." The income tax effect
on significant items was calculated based upon the enacted
tax laws and statutory income tax
rates applicable in the tax jurisdiction(s) of the underlying
non-GAAP adjustment.
|
3. "Earnings per
common share - diluted."
|
4. Restructuring
charges, asset related charges, and costs associated with
implementing the Company's 2020 Restructuring Program.
|
5. Costs associated
with implementing the Company's Digital Acceleration
program.
|
Reconciliation of
Free Cash Flow
|
Three Months
Ended
|
Six Months
Ended
|
In millions
(Unaudited)
|
Jun 30,
2021
|
Jun 30,
2020
|
Jun 30,
2021
|
Jun 30,
2020
|
Cash provided by
(used for) operating activities - continuing
operations (GAAP)
|
$
|
2,021
|
|
$
|
1,599
|
|
$
|
1,793
|
|
$
|
2,835
|
|
Capital
expenditures
|
(333)
|
|
(273)
|
|
(622)
|
|
(668)
|
|
Free cash flow
(non-GAAP) 1
|
$
|
1,688
|
|
$
|
1,326
|
|
$
|
1,171
|
|
$
|
2,167
|
|
1. Free cash flow in
the first six months of 2021 reflects a $1 billion elective pension
contribution.
|
Reconciliation of
Cash Flow Conversion
|
Three Months
Ended
|
In millions
(Unaudited)
|
Sep 30,
2020
|
Dec 31,
2020
|
Mar 31,
2021
|
Jun 30,
2021
|
Cash provided by
(used for) operating activities - continuing
operations (GAAP)
|
$
|
1,761
|
|
$
|
1,656
|
|
$
|
(228)
|
|
$
|
2,021
|
|
Operating EBITDA
(non-GAAP)
|
$
|
1,485
|
|
$
|
1,780
|
|
$
|
2,271
|
|
$
|
3,573
|
|
Cash flow conversion
(Operating EBITDA to cash flow from
operations) (non-GAAP) 1
|
118.6
|
%
|
93.0
|
%
|
(10.0)
|
%
|
56.6
|
%
|
Cash flow conversion -
trailing twelve months (non-GAAP)
|
|
57.2
|
%
|
1. Cash flow
conversion in the first quarter of 2021 reflects a $1 billion
elective pension contribution.
|
For further
information, please contact:
|
|
|
Investors:
Pankaj
Gupta
pgupta@dow.com
+1
989-638-5265
|
Media:
Kyle
Bandlow
kbandlow@dow.com
+1
989-638-2417
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/dow-reports-second-quarter-2021-results-301339324.html
SOURCE The Dow Chemical Company